Repsol (OTCMKTS:REPYY) and HollyFrontier (NYSE:HFC) are both large-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Earnings & Valuation
This table compares Repsol and HollyFrontier’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Repsol||$46.59 billion||0.64||$2.40 billion||$1.75||11.13|
|HollyFrontier||$14.25 billion||0.84||$805.39 million||$2.32||29.14|
Repsol has higher revenue and earnings than HollyFrontier. Repsol is trading at a lower price-to-earnings ratio than HollyFrontier, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.3% of Repsol shares are owned by institutional investors. Comparatively, 87.9% of HollyFrontier shares are owned by institutional investors. 1.0% of Repsol shares are owned by insiders. Comparatively, 0.6% of HollyFrontier shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Repsol pays an annual dividend of $0.92 per share and has a dividend yield of 4.7%. HollyFrontier pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Repsol pays out 52.6% of its earnings in the form of a dividend. HollyFrontier pays out 56.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Repsol is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Repsol has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, HollyFrontier has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Repsol and HollyFrontier, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HollyFrontier has a consensus target price of $62.53, indicating a potential downside of 7.51%. Given HollyFrontier’s higher possible upside, analysts clearly believe HollyFrontier is more favorable than Repsol.
This table compares Repsol and HollyFrontier’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
HollyFrontier beats Repsol on 9 of the 16 factors compared between the two stocks.
Repsol, S.A. operates as an integrated energy company worldwide. Its Upstream segment engages in the exploration and development of crude oil and natural gas reserves. The company's Downstream segment in involved in refining and petro chemistry; trading and transportation of crude oil and oil products; commercialization of oil products, petrochemical, and LPG; and the commercialization, transport, and regasification of natural gas and liquefied natural gas (LNG). The company also distributes and markets asphalt products; installs, operates, and manages gas stations; provides maritime services; commercializes platform for customer management and marketing plans; constructs and operates oil refineries; refines and markets hydrocarbons; provides human resource services; distributes and supplies electricity; leases logistics assets; and develops new energy source projects, as well as produces and markets lubricants and biofuels. Further, it is involved in fuel marketing, research activities, regasification of LNG, marketing of chemical products, trading and transport, insurance and reinsurance, and financing activities. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.
HollyFrontier Corporation operates as an independent petroleum refiner in the United States. The company operates through three segments: Refining, Lubricants and Specialty Products, and HEP. It primarily produces high-value light products, such as gasoline, diesel and jet fuel, and specialty lubricant products, as well as specialty and modified asphalt. The company offers its products to other refiners, convenience store chains, independent marketers, retailers, truck stop chains, wholesalers, railroads, governmental entities, paving contractors or manufacturers, and commercial and specialty markets, as well as for commercial airline use. It owns and operates 5 refineries with a combined crude oil processing capacity of approximately 457,000 barrels per day in El Dorado, Kansas; Tulsa, Oklahoma; Artesia, New Mexico; Cheyenne, Wyoming; and Woods Cross, Utah. The company also owns and operates vacuum distillation and other facilities in Lovington, New Mexico, as well as asphalt terminals in Arizona, New Mexico, and Oklahoma. Its refineries serve markets in the Mid-Continent, Southwest, and Rocky Mountain regions of the United States. In addition, HollyFrontier Corporation produces base oils and other specialized lubricant products; and owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities, and refinery processing units. The company was formerly known as Holly Corporation and changed its name to HollyFrontier Corporation as a result of its merger with Frontier Oil Corporation in July 2011. HollyFrontier Corporation was founded in 1947 and is headquartered in Dallas, Texas.
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